FORMAT FOR REPORTING MATERIAL WEAKNESSES
Title and Description of the Material Weakness: Use a short title and provide a brief narrative summary describing the weakness and its scope; i.e. local, area wide, service wide, etc. If there is a source document use its title and description. No more than a three or four sentences description, if possible.
Functional Category: Indicate which Management Control Reporting Category (see Attachment A for list of categories) is applicable to this material weakness.
Component/Appropriation/Account Number: Identify the appropriation(s) and account number(s) related to the described material weakness using the standard DoD designation, e.g., FY 2002 Operation and Maintenance, Navy (O&MN), 1771804.
Validation Process: Briefly explain how the effectiveness of the corrective action(s) will be demonstrated.
Results Indicators: Briefly describe key results that have been or will be achieved. Quantitative and/or qualitative measures that determine the benefits derived or that will be derived from the correction action(s), and the overall impact of the correction on operations should be described. If the amount of monetary benefits can be determined, it should be reported here.
Source(s) Identifying Weakness: Material weaknesses may be identified by Management Control Reviews or by any of the following Alternate Management Control Review sources: (a) GAO audits;
(b) DoDIG audits; (c) NAVAUDSVC audits; (d) DODIG inspections; (e) NAVINSGEN inspections;
(f) BUPERS IG inspections; or (g) other sources, such as daily knowledge of operations, internal management reviews, accreditation reviews, etc. The key question is: were the controls tested? Indicate the source that was used. When audit findings are the source of the material weakness identification, provide the title, report number, and date of the audit report that identified the weakness. If the weakness was identified by more than one source, list all identifying sources, in order of significance.
Major Milestones in Corrective Action: A milestone chart is to be provided which indicates actions taken and actions planned. It should be separated into three categories: (a) completed milestones, (b) milestones to be achieved during the next fiscal year, and (c) milestones to be achieved after the net fiscal year. Milestones should be reported in chronological order. All planned milestones should reflect a specific date, by month and year, based on the ending date of the nearest prospective semiannual period when the milestone will be accomplished. For example, milestones to be completed in the first half of fiscal year 2003 would be reported as being completed on “3/2003,” those planned for the latter half would be dated “9/2003.” The letter “C” (for completed) should be used for accomplished milestones, rather than a date. The appropriate format is as follows:
Completed Milestones:
Date:Milestone:
Planned Milestones (Next Fiscal Year):
Date:Milestone:
Planned Milestones (Beyond Next Fiscal Year):
Date:Milestone:
Verification: (Completion date and verification actions)
Point of Contact: The name, telephone number, and e-mail address of the official responsible for administering implementation of all identified corrective actions for this material weakness.
Management Control Reporting Categories
- Research, Development. Test and Evaluation. Covers the basic project definition, approval and transition from basic research through development, test and evaluation and all Department of Defense (DoD) and contractor operations involved in accomplishing the project work, excluding the support functions covered in separate reporting categories such as Procurement and Contract Administration.
- Major Systems Acquisition. Covers items designated as major systems and that are subject to the procedures of the Defense Acquisition Board, the Military Services acquisition review councils, or the Selected Acquisition Reporting System. (DoD Directive 5000.1 of 15 March 1996 (NOTAL), “Defense Acquisition,” may be helpful when evaluating a weakness for inclusion in this category.)
- Procurement. Covers the decisions to purchase items and services together with certain actions to award and amend contracts (e.g., contractual provisions, type of contract, invitation to bid, independent government cost estimate, technical specifications, evaluation and selection process, pricing and reporting).
- Contract Administration. Covers the fulfillment of contractual requirements including performance and delivery, quality control and testing to meet specifications, performance acceptance, billing and payment controls, justification for contractual amendments and actions to protect the best interests of the Government.
- Force Readiness. Includes the operational readiness capability of combat and combat support (both active and reserve) forces, based on analyses of the use of resources to attain required combat capability or readiness levels.
- Manufacturing, Maintenance and Repair. Covers the management and operation of in-house and contractor-operated facilities performing maintenance and repair of, and/or installation of modifications to material, equipment and supplies. Includes depot and arsenal-type facilities as well as intermediate and unit levels of military organizations.
- Supply Operations. Encompasses the supply operations at the wholesale (depot and inventory control point) level from the initial determination of material requirements through receipt, storage, issue reporting and inventory control (excluding the procurement of materials and supplies). Covers all supply operations at retail (customer) level, including the accountability and control for supplies and equipment of all commodities in the supply accounts of all units and organizations (excluding the procurement of material, equipment and supplies).
- Property Management. Covers construction, rehabilitation, modernization, expansion, improvement, management and control over real and installed property and facilities (both military and civil works construction). Includes all phases of property life-cycle management from determination of need through disposition. Also covers disposal actions for all material, equipment and supplies, including the Defense Reutilization and Marketing System.
- Communications and/or Intelligence and/or Security. Covers the plans, programs, operations, systems and management activities for accomplishing the communications and intelligence missions. Includes safeguarding classified resources but not peripheral assets and support functions covered by other reporting categories. Also covers the DoD programs for protection of classified information.
- Information Technology. Covers the design, development, testing, approval, deployment, use and security of automated information systems (using a combination of computer hardware, software, data or telecommunications that performs functions such as collecting, processing, storing, transmitting or displaying information) and other technologies for processing management information. This includes requirements for justification of equipment. (DoD 7740.1-G of July 1988 (NOTAL), “DoD ADP Internal Control Guidelines, ” may be helpful when evaluating a weakness for inclusion in this category.)
- Personnel and/or Organization Management. Covers authorizations, recruitment, training, assignment, use, development and management of military and civilian personnel of the DoD. Also includes the operations of headquarters organizations. Contract personnel are not covered by this category.
- Comptroller and/or Resource Management. Covers the budget process, finance and accounting, cost analysis, productivity and management improvement, and the general allocation and continuing evaluation of available resources to accomplish mission objectives. Includes pay and allowances for all DoD personnel and all financial management areas not covered by other reporting categories, including those in connection with Office of Management and Budget (OMB) Circular A-76 (Revised), “Performance of Commercial Activities.”
- Support Services. Includes all support services functions financed from appropriated funds not covered by the other categories, such as health care, veterinary care, and legal and public affairs services. All nonappropriated fund activities are also covered by this category.
- Security Assistance. Covers management of DoD foreign military sales, grant aid and international military education and training programs.
- Other (Primarily Transportation). All functional responsibilities not contained in the previously noted categories, including management and use of land, sea and air transportation for movement of personnel, material, supplies and equipment using both military and civilian sources.